Consumer confidence rebounded last week according to the ANZ-Roy Morgan’s consumer confidence barometer, largely due to continued strength in the housing market and optimism about the upcoming federal budget.
Despite the pick up last week, the survey indicated confidence remained below average and was trending down according to ANZ chief economist Warren Hogan
“…the improvement last week was fairly broad-based, with particular strength in expectations of the economic outlook over the next year (+8.6%)…
A good jobs report for March, continued strength in housing markets and the Government’s positioning of the upcoming Budget appear to have helped support confidence in the past week”.
I keep an eye on consumer confidence as it is a leading (forward) indicator for the property markets.
When consumer confidence is high, people are happy to make buying decisions, particularly large buying decisions such as real estate and when consumer confidence is low people tend to hold off making large purchases including moving home or buying investment properties.